Krishna Patel, the owner of Ashtead Newsagents in Dorking, is worried about the new law preventing the display of cigarettes

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SURREY newsagents have reacted angrily to the government’s announcement this week that they will be banned from displaying cigarettes in their shops from 2013.

Retailers claim that the legislation, which is intended to cut youth smoking, will cause trade to fall and force them to refit expensive counters.

The Tobacco Retailers Alliance (TRA) estimates that the ban could force 2,600 shops to close with a possible loss of 8,000 jobs.

Dean Holborn, of Traders Holborn, in Redhill, said: “This legislation will have a massive impact on newsagents. Approximately 10% of my revenue is generated by tobacco products and that will obviously be hit hard in 2013."

The news comes at a tough time for smaller retailers, already struggling with the economic downturn and increasing competition from supermarkets.

Krishna Patel of Ashtead Newsagents, Dorking, said: “We have already suffered by falling newspaper and greeting card sales as people have switched to the internet. This law could be the final nail in the coffin for many newsagents.”

It is understood that ministers worked behind the scenes to persuade Health Secretary Alan Johnson to stagger the law’s implementation, with smaller retailers given two years more time than supermarkets to comply.

“To be honest the two years will not make much difference. Supermarkets have the resources to change their store layout and diversify,” said Mr Patel.

“This law will hit the traditional newsagents the most. We do not have the space in our shop to diversify and some of us are reluctant to sell alcohol,” he added.

Aside from the impact on retailers, many fear that the ban will increase the amount of contraband tobacco sold in the UK.

Recent figures showed that 27% of cigarettes and 68% of rolling tobacco consumed in Britain did not have UK duty paid, costing the government an estimated £11m a day in lost revenue.

“It stands to reason that if smokers are discouraged from buying tobacco in shops then more will turn to look to buy it illegally,” said Mr Holborn.

It is still unclear if the law will discourage young people, and the TRA claimed responsible newsagents had already helped reduce youth smoking to an all-time low.

However, a recent test by trading standards officers in the South East found 21% of stores still selling to minors.

Professor John Newton, regional director of Public Health South East, said: “We welcome these measures which aim to stop the underhand techniques being used to recruit young people into smoking.”